Valeura Energy has recently completed an infill drilling campaign at Nong Yao A and has begun development drilling on the Nong Yao C extension. Both sites are part of the Nong Yao oil field, where Valeura holds a 90% operated working interest, situated offshore in the Gulf of Thailand.
According to Sean Guest, Valeura President and CEO, the decision to drill these wells was a strategic move to enhance production rates before committing their rig to the Nong Yao C development drilling programme. Guest emphasised that the commencement of drilling operations at the new Nong Yao C infrastructure is a significant milestone for Valeura, marking their first new development in Thailand. This development is expected to be a major contributor to production growth in the latter half of this year.
Guest also highlighted that Valeura’s drilling operations have achieved one full year of work without a lost-time injury, underscoring the company’s commitment to safety and efficiency.
At the Nong Yao A wellhead platform, Valeura has successfully drilled two production-oriented horizontal wells, both of which have been brought online as producers. The 37H well concluded with a horizontal section in the primary target H12.5 reservoir, currently producing approximately 500 barrels per day (bbl/day) of oil based on a 10-day period in late May. This well also encountered 68 feet of net oil pay across eight separate appraisal target intervals, which will be evaluated for potential future development wells.
The 38H well has been completed as a horizontal producer in the H4.3 reservoir interval and is currently contributing approximately 1,000 bbl/day of oil based on performance over a five-day period in late May. Additionally, a thin oil-bearing sand was found in the shallower H2.0 sand interval, which will be further studied for potential producible volumes.
The drilling rig has since moved to the Nong Yao C mobile offshore production unit, initiating batch drilling operations to develop the Nong Yao C field extension. This campaign is expected to last around four months and will consist of up to nine wells, including six producer wells and up to three water injectors. Valeura anticipates first oil from the Nong Yao C development by Q3 2024, targeting an aggregate peak oil production rate of 11,000 bbl/day, which represents a significant increase from the 7,307 bbl/day reported in Q1 2024.
Valeura Energy Inc (TSX:VLE) is an upstream oil & gas company, with a clear strategy to add value for shareholders. The Company has a strong balance sheet positioning it for potential inorganic growth opportunities in the near/medium-term, and substantial longer-term upside potential through an operated deep, tight gas play.
